Next revealed a sparkling set of results this morning with both sales and profits up. Retail Week pulls out some of the key facts.

  • Next said it plans to move from its two season cycle to a four season cycle to “reflect the continuing trend for consumers to buy closer to the point at which they need clothing”.
  • Next’s trading space in Home has more than doubled to 1.7 million sq ft over the past six years and Home sales now account for 18% of total turnover.   
  • More than 90% of Next’s store sales are derived from shops that deliver more than 15% profit contribution on sales.
  • Next reported that rental inflation remains “very low” and most stores experienced little or no increase at rent review.  Interestingly, Next said that “in the vast majority of cases, when stores reach the end of their lease, we have been able to reduce rents”.
  • Next plans to add 360,000 sq ft to its property estate. Some 113,000 sq ft of this will come from three large Home format out-of-town stores. Two of these stores – Maidstone, Kent and Hedge End, Southampton - are being built from the ground up, to Next’s own design.
  • Next directory sales increased 12.4%. Of that growth the UK comprised 8.5% and international sales 3.9%. Directory sales represent 38% of turnover.
  • Next said 45% of orders made from home were collected in store, up from 30%.
  • Next will publish “new-in” brochures because in the past its four catalogues have missed out on some of the newest retail stock.
  • Next forecasts international online sales to grow 50% to £150m by the end of 2015.
  • Next plans to launch online in 11 new territories in the year ahead including China, Brazil and Libya.
  • The number of directly-owned international Next stores have been reduced to 16 and broke even for the first time this year.

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